What is mining?


Cryptocurrency mining performs 2 functions: adding transactions to the blockchain (securing and verifying) and also releasing new currency. Individual blocks are added to the blockchain and confirmed is usually via proof of work, or PoW for short. The other way is via proof of stake, or PoS.

Mining needs a computer and a special program, which helps miners compete with others in solving complicated mathematical problems. In regular intervals, miners would attempt to solve a block having the transaction data using cryptographic hash functions requiring huge computing resources.

The computing resources are measured by hash value which is a numeric value of fixed length that uniquely identifies that particular block. Miners use their computer to solve for the hash value in the quickest time. The first to crack it would be considered as the one who mined the block and is eligible to get a reward.